The US satellite radio service - broadcaster of programmes from Howard Stern and Martha Stewart – Sirius XM Radio intends filing for bankruptcy, in case its negotiations with the holders of its debt turn out to be unproductive.

Standing up against prospective control by John Malone of Liberty Media and Charlie Ergen of EchoStar, Sirius said though it has substituted a $172.5 million debt maturing in December for new debt payable in 2011, nearly $175 million comes due this Sunday.

According to reports, after Sirius rejected Ergen’s offer for the company’s takeover last year, Ergen has been buying up Sirius’s debt. He also holds $175 million of a $300 million lot of discounted Sirius bonds due on Tuesday, and has been involved in negotiations with Sirius.

In a separate dialogue with Sirius, satellite TV company Liberty Media - which controls DirecTV Group – is deliberating a potential arrangement to foil Ergen’s advances. In fact, a merger with DirecTV could be a better option for Sirius instead of yielding to Ergen.

The financial crisis for Sirius began after its union with XM, and pricey programming deals with Major League Baseball and a $500 million deal for Howard Stern.

Out of Sirius’s total debt, nearly $1billion is due this year, and the company can turn aside bankruptcy if it can work out an arrangement with either Liberty Media or EchoStar.